Housing Market Primed for Sellers?

Optimism in selling increased from 37% in Q1 2019, and NAR Chief Economist Lawrence Yun said moderate increases in home prices is a contributing factor.

“With home price appreciation slowing, home sellers understand that the days of large price gains from holding an extra year are over,” Yun said.

Also increasing was the amount of people who think now is a good time to buy with 65% agreeing, and 35% disagreeing, which is unchanged from Q1 2019.

The NAR states that 55% of those polled said the economy is improving, which is a slight increase from last quarter’s 53%, with optimism greatest among those who earn $100,000 or more and reside in rural areas.

The report added that 53% of Gen Xers said the economy is on the right track, which is up from Q2 2019’s 50%.

"Many in the Generation X population find themselves needing to purchase multi-generational homes,” Yun said. “Also, they may be feeling financial stress from caring for aging parents and children of all ages. Nonetheless, they have an optimistic outlook about the future.”

Sixty-three percent of those surveyed said they believe home prices have increased over the past year—an increase from last quarters 61%—and 43% said prices will remain the same over the next six months. The survey also found that 49% said they expect to see an increase in prices over the next six months.

Twenty-seven percent of those surveyed who don’t own a home said they believe it would be difficult to qualify for a mortgage due to their financial state, and 30% said it would be “somewhat difficult” to qualify.

“Lower mortgage rates, along with job and wage growth, will lead to an increase in sales and thereby contribute positively to economic growth in the upcoming quarters,” Yun said.